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Know When It Makes Sense to Book Flights & Hotel Stays Through an Online Travel Agency

September 10, 2017
by
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There are advantages and disadvantages to booking travel with an online travel agency (OTA), like Orbitz, Expedia, or Priceline.

I would like to know if you had an experience with 3rd-party booking websites like Expedia, Orbitz, and Travelocity? What are the pros and cons of using them compared to booking directly through hotel and airline websites?

Folks Who Prefer Staying at Independent Hotel Chains, Like One & Only Hotels, Can Find Great Deals Through Online Travel Agencies!

Online travel agencies offer a convenient way to search multiple airlines and hotels at once. But making travel reservations through 3rd-party booking sites do NOT always come with the same perks you get when booking directly.

I’ll explain the pros and cons of using an online travel agency.

Advantages of Booking Travel Through an Online Travel Agency

1. Convenience

Many folks like to book hotels and flights through Orbitz or Priceline because these sites offer a simple way to search multiple airlines and hotel chains at once. And if you don’t have loyalty to a certain airline or hotel, online travel agencies can help you find the cheapest travel prices.

Plus, you’ll get an organized travel itinerary when you book through an online travel agency. And you can view and manage all aspects of a trip in one place, including airfare, hotel stays, and rental cars. This is ideal for families or groups traveling together.

Booking Through an Online Travel Agency Can Be Convenient for Families Because You Can View and Manage All Parts of Your Travel Itinerary in One Place

Some travelers would rather book this way than having separate reservations for each part of their trip.

Many airlines also have a similar policy when booking directly, but some don’t offer a refund if you cancel a last-minute booking. For example, with United Airlines you can only get a refund within 24 hours if you made your purchase 1 week or more prior to the original scheduled departure flight.

3. Hotel Price Guarantee

Some online travel agencies offer a price guarantee, which makes it possible to get a refund should you find a price drop after booking a hotel reservation.

With the Expedia Hotel Price Guarantee, You Can Get a $50 Travel Coupon If You Find a Price Drop Within 24 Hours of Booking

For example, with Expedia’s Extended Hotel Price Guarantee, you can get a $50 travel coupon and a refund of the price difference if you find a lower price online (with conditions) within 24 hours of booking.

Earn Expedia Points When You Use Them to Book Travel and Redeem Points to Offset the Cost of Future Travel

Many online travel agencies also have their own loyalty programs, which allow you to earn points for each dollar spent on their website. These rewards can be used for future travel booked on their websites. This is a nice way to earn points on stays at independent or boutique hotel stays where you usually don’t earn any points.

But Consider These Drawbacks!

1. You’ll Miss out on Elite Status Perks

When you book hotel stays through an online travel agency, you typically will NOT get elite status perks. This means no room upgrades, late check-out, or bonus points for your stay.

Room Upgrades Are Unlikely When You Book Hotel Stays Through an Online Travel Agency

And some chains (like Hilton, Marriott, and Starwood) require you book with them directly to get free Wi-Fi. So even if an online travel agency has a cheaper price, consider if you’ll end up paying more during your stay to get internet access.

Also, keep in mind, if you’re participating in a hotel promotion, like IHG Accelerate, you’ll have to book directly to get credit.

You should enjoy frequent flyer benefits and earn miles if you book flights through an online travel agency. Just be sure that you’re NOT booking a Basic Economy ticket. Because these restrictive tickets don’t include seat assignments. And you’ll pay more to stow a carry-on in the overhead bin.

2. Earn Fewer or No Frequent Flyer Miles or Hotel Points

You typically do NOT earn any points when booking hotel stays through an online travel agency. Even if you’re just a casual traveler, the points you earn from booking directly can add up. These points can save you money on future travel with free or discounted hotel stays.

Earn Hyatt Points When Booking Directly With the Hotel Chain and Use the Points to Book Free Nights at Fantastic Hotels Like the Andaz Maui

And when you book airfare through an online travel agency, you might earn fewer miles than you would if you purchased airfare directly with the airline.

For example, JetBlue offers at least6 points per $1 spent when you book at JetBlue.com. But you’ll earn 50% less, or 3 points per $1, if you book through an online travel agency.

3. Fees and Higher Prices

Before booking travel through an online travel agency, I recommend comparing prices to what’s available directly with the airline or hotel. Because it’s never fun to overpay!

For example, certain airlines add fees to airfare bought through online travel agencies to encourage folks to book directly instead. You’ll pay an extra ~$18 fee when you book flights through sites like Orbitz or Expedia on these airlines:

Austrian Airlines

Brussels Airlines

Lufthansa

SWISS

And if you have to make changes to your itinerary, you could end up paying fees to the airline AND the online travel agency.

Bottom Line

Using online travel agencies like Orbitz, Expedia, or Priceline can addconvenience when booking travel. It’s simple to search multiple airlines and hotels to compare prices. And they make it easy to view and manage your travel itinerary for all travelers.

But there are drawbacks to consider, including:

Not usually getting elite status perks when you book hotel stays through an online travel agency

Earning fewer or no frequent flyer miles or hotel points

Paying higher prices or extra fees if you have to change or cancel your trip

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15.24% - 25.24% (Variable)

$95

Yes

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Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

4comments

People, please be advised that the price increases and/or changes from time to time. We might see a different price later on the flights we’re going to check now. Flight prices and seat availability change rapidly (drop and rise frequently). Prices are subject to change without prior notice. And in some cases, it increases drastically. Fares change constantly all the time and, indeed, you might see big differences from one day of the week to the next. But with respect to day of purchase, there is simply no pattern to it. While seat availability often changes based on demand for a particular flight.

The reality is the airlines who set the prices—we just seek out and present the best ones. And as many of you have noticed, airlines change fares often.

Airfares change regularly and each fare has specific terms and conditions set by the airline such as refund and cancellation rules which affect the price.

The fare class you were looking at yesterday is now sold out.

It is not uncommon for fares or seat availability on a particular flight to change on a daily, sometimes even hourly basis, or sarcastically in minutes. If you see a fare or seat availability, know that it may not be there the next time you search –it could be higher, it could be lower or no longer existing. Neither Webjet.com, nor any other on-line travel agency, has the ability to set prices; we aim to do a really good job at sorting through tens of thousands of options to find the best deals, but it is the airlines and their pricing teams who are actually responsible for those deals.

Fares on a particular flight will generally increase as the flight becomes more heavily booked but at certain points, fares may fall dramatically if a fare sale is launched or an airline computer determines that booking levels are below where they should be for a given departure date.

I have worked with different TRAVEL AGENCIES such as Expedia.com / Travelocity.com , Priceline.com, Webjet.com.au and webjet.co.nz. I’ve been with different airlines as well, such as Cathay Pacific / Cathay Dragon (Dragonnair) and United Airlines.

Airline Cancellation policy will always depend on the fare class of the seat you have purchased as there are several fare classes for each Economy, Premium Economy, Business, and First class of service.

I had to cancel a planned trip to Sicily in April 2016 when my husband got to ill to fly. I rebooked the trip, or I should say, the reward flights, for this past April but I was lazy about booking the hotels. By the time I got around to rebooking them, the hotel we wanted to stay at in Ragusa was sold out. A web search of various booking engines showed that Expedia had 1 room there. So I grabbed it.

I was so worried that the booking might not be valid that I emailed the hotel and they confirmed that we did have a room booked via Expedia. Ok, sigh of relief.

The room type was the smallest room, so I wasn’t expecting much. I was just glad to be able to stay there, as it is considered the best hotel in town, and well-located. I had corresponded with the staff with questions several times and they were very helpful and responsive so I felt our one night stay would be just fine.

We arrived late afternoon, and were surprised, shocked, elated to be offered a free upgrade to the Royal Suite!! 2 incredible bathrooms, large room, small sitting room, huge terrace with an amazing view. Too bad we were only in the room long enough to shower and sleep! Considering stories I’d heard of people using OTAs and getting the room equivalent of a closet, this was a happy surprise. And I am definitely not expecting it to happen ever again- pure beginners luck!!!!

I use SnazzyChad.com to book my hotels and rental cars. It’s a MEMBERS-ONLY wholesale booking engine. Membership is FREE and prices are up to 40% (or more) off the lowest online prices. You earn reward credits, too. Majority of savings are delivered to the member and a portion of the savings support hurricane victims and other charities. Win, win for everybody!! Check it out!

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)